A New Direction for India Driven by Semiconductor Demand

India’s semiconductor manufacturing ecosystem is expanding rapidly, but its full economic value and benefits are expected to emerge gradually over the next three to five years, according to a research report by 360 ONE Capital. The report said the sector will progress through key stages such as project commissioning, approvals from global customers and achieving stable production. India’s semiconductor demand, estimated at $56 billion (around ₹4.6 lakh crore) in 2025, is projected to reach $117 billion (around ₹9.7 lakh crore) by 2030, representing an annual growth rate of about 16%.

Under the India Semiconductor Mission 1.0, 12 approved projects are attracting more than $18 billion in investments, while the upcoming India Semiconductor Mission 2.0 could bring over $35 billion in additional investments. While direct returns from chip fabrication plants and OSAT facilities may take time, allied sectors such as construction, power and water utilities, electronics manufacturing, engineering, automation and equipment support are expected to see opportunities in the near term. The report said the semiconductor industry should be viewed with a 10–15-year perspective, with the key challenge being whether factories can consistently produce high-quality chips, satisfy global customers and operate at scale.